Claims circulating online that the Federal Government has ordered students nationwide to begin repayment of loans issued under the Nigerian Education Loan Fund (NELFUND) are misleading and inaccurate, findings by Edutimes Africa Factchecker reveals.
The reports, which originated from a circular issued by the University of Benin (UNIBEN), have been widely interpreted as a blanket directive for immediate repayment by all beneficiaries of the federal student loan scheme.
However, no such nationwide repayment order has been issued by the Federal Government or NELFUND.
What the Circular Actually Means
The UNIBEN circular dated January 23 merely acknowledged the receipt of repayment guidelines from NELFUND and informed affected students about procedural steps—not a compulsory or immediate repayment demand.
According to education finance experts, universities are required to familiarise beneficiaries with loan terms, including repayment frameworks, long before repayment formally begins. This is a standard compliance and awareness process, not a repayment trigger.
NELFUND Law Is Clear on Repayment Conditions
Under the Student Loans (Access to Higher Education) Act, 2024, loan repayment does not commence automatically after graduation or within a fixed number of years.
Instead, repayment begins only when a beneficiary is gainfully employed and earning above the legally defined income threshold. The law also provides safeguards, including:
No interest on the loan
Flexible repayment timelines
Protection for unemployed graduates
Payroll-based deductions where applicable
As of January 2026, NELFUND has not announced any nationwide repayment commencement date.
What NELFUND Has Said So Far
Earlier this month, NELFUND Managing Director, Akintunde Sawyerr, disclosed that:
Over 1.36 million applications have been received
864,798 students have benefited
Total disbursement stands at ₦161.97 billion
At no point did the agency announce the activation of repayment for current beneficiaries.
Why This Clarification Matters
Misreporting loan policy can:
Cause unnecessary panic among students
Discourage participation in the scheme
Undermine trust in public education financing reforms
Education stakeholders have urged the media to exercise caution and distinguish between administrative guidelines and policy directives.
Edutimes Africa’s Verdict
❌ False: FG has ordered immediate repayment of NELFUND loans
✅ True: Institutions are being briefed on repayment procedures in line with the law
⏳ Fact: Repayment begins only when beneficiaries are employed and eligible
Students are advised to rely on official communication from NELFUND and verified education policy platforms for accurate updates.
Edutimes Africa will continue to monitor developments and provide verified, student-centred education policy reporting.
EduTimes Africa, a product of Education Times Africa, is a magazine publication that aims to lend its support to close the yawning gap in Africa's educational development.
